The CEO of Kraken, Jesse Powell, came out to defend the exchange after a wave of criticisms by many users regarding the events that occurred last Monday when the price of Ethereum (ETH) suffered a significant fall.
ETH / USD market in Kraken recently capitalized a significant fall that took the digital currency to levels close to USD 700 per unit, a price that was significantly different from the average managed in other exchanges where it is it was trading at least $ 1,500.
Following the rare events that took place on the platform and in the face of criticism from many worried and upset users, Powell reported in an interview with Bloomberg News that “they were in the investigation process” and still haven’t found evidence of malfunction by engines within Kraken.
Powell is Defending Kraken
After the first investigations, Powell reported through his Twitter account that this weird behavior in the exchange of ETH for USD appears to happen due to “extreme sales,” discarding the possibility that what happened had to do with failures within the platform.
With these words, the CEO of the exchange firmly rejected every single allegation coming from some users and analysts, which dared to accuse Kraken as responsible for the irregularities that occurred, clarifying that these irregular fluctuations also damaged markets of other digital currencies within the platform.
A member of the @CoinMetrics team, Kevin Lu reflected on the situation and presented a message thread detailing what happened: “Today’s market crash is brought to you by Kraken’s malfunctioning trade matching engine.”
Faced with these remarks by Lu, Powell replied: “Hi Kevin, I’m a fan of @coinmetrics but don’t you think it’s irresponsible to make misleading, disparaging, and defamatory statements based on your speculation, without any direct information? I’m sure you can think of a plausible alternative. Hope you issue a correction.”
Powell Even Made a More Aggressive Approach
When reviewing some posts from affected users, Powell turned into a much more aggressive stance in the face of criticism, responding in almost non-conciliatory terms than those seen in previous posts.
To a user that showed his disgust about the stance that Powell took when confirming that what was happened to the cryptocurrency was due to crypto whales’ movements, the manager replied: “Yes. Our job is to secure your funds, not tell you how to trade. Please don’t trade on leverage if you don’t understand the risks. “
Ethereum Price Fell Down
The events within Kraken happened right when the price of Ethereum showed a notable drop, a relatively high margin of commissions for operations within the network is at work.
By: Jenson Nuñez
